This loan calculator helps you quickly estimate your mortgage, auto loan, or personal loan repayment schedule. The process is simple and the results are comprehensive:
Enter Loan Parameters: In the "Loan Amount" field, enter the total amount you plan to borrow (e.g., $300,000 for a home). In the "Annual Interest Rate" field, enter the rate offered by your lender (e.g., 6.5%). In the "Loan Term" field, select the number of years over which you will repay the loan. Common mortgage terms are 15 or 30 years.
Choose a Repayment Method: Select "Fixed Monthly Payment" if you want a consistent payment amount each month, which is easier to budget for. Select "Fixed Principal Repayment" if you prefer to pay down the principal faster and save on total interest, accepting that your early payments will be higher and decrease over time.
Review Results: After calculation, the summary at the top shows your first monthly payment, total interest paid, and the ratio of interest to principal. The amortization schedule below breaks down every single payment, showing how much goes to principal, how much to interest, and your remaining balance at each step.
Our loan calculator is valuable for a wide range of personal and professional financial planning scenarios:
Mortgage Shopping: When comparing mortgage offers from different lenders, use this calculator to see exactly how much you will pay over the life of the loan. A lower interest rate or a shorter term can dramatically reduce your total interest paid. You can also evaluate whether paying points to lower your rate makes financial sense.
Auto Financing Decisions: Dealerships often push longer loan terms to lower monthly payments, but this increases your total interest cost. Use the calculator to see the true cost of a 72-month loan versus a 48-month loan, and make an informed decision that balances monthly affordability with long-term savings.
Investment Opportunity Cost Analysis: When deciding whether to pay off a loan early or invest the extra cash, compare the loan interest rate against your expected investment return. If your investment yield is higher than the loan rate, keeping the loan and investing might be the smarter move. This calculator helps you quantify the interest you would save by paying off early.
Amortization Formula (Fixed Monthly Payment): The monthly payment M is calculated as M = P * [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the total number of payments. This formula ensures each payment is identical, with the interest portion decreasing and the principal portion increasing over time.
Fixed Principal Repayment Formula: In this method, the principal portion of each payment is constant (P / n). The interest for each month is calculated as the remaining balance multiplied by the monthly rate. Because the balance decreases faster, the total interest paid is lower than with the fixed monthly payment method, but the initial monthly payments are higher.
APR vs. Interest Rate: The nominal interest rate is the pure cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus any lender fees, points, or other charges, expressed as an annual rate. When comparing loans, always use APR rather than the stated interest rate to get an apples-to-apples comparison of the true cost.
Fixed monthly payment (amortized): Your monthly payment stays the same throughout the loan term. Early payments are mostly interest, with principal increasing over time. Fixed principal repayment: Your principal payment stays the same each month, while interest decreases over time, so your total monthly payment decreases over time. Total interest is lower with fixed principal.
It depends on your opportunity cost. If your loan interest rate is higher than what you could earn by investing the same money, paying off early makes financial sense. With fixed principal repayment, early payoff saves more interest because more principal is paid down in the early stages. Always check for prepayment penalties before making extra payments.
The interest rate is the cost of borrowing expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate plus any additional fees or costs, giving you a more complete picture of the total cost of the loan. When comparing loans from different lenders, use APR rather than the interest rate to make an accurate comparison.
No. This calculator computes principal and interest only. Your actual monthly mortgage payment (PITI) typically includes property taxes and homeowners insurance. For a complete estimate, add your monthly property tax and insurance amounts to the calculated payment.
Yes, completely. All calculations are performed locally in your browser using JavaScript. No loan data, personal information, or calculation results are ever transmitted to our servers or stored anywhere. Your financial privacy is fully protected.
Currently, the best way to save the schedule is to select and copy the table from your browser, then paste it into a spreadsheet application like Excel or Google Sheets. We plan to add CSV export functionality in a future update.
Interest is calculated on the remaining balance. In the first month, the balance is the full loan amount, so interest is highest. As you pay down the principal each month, the remaining balance decreases, and therefore the interest portion of each subsequent payment also decreases.
Yes. Simply subtract your down payment from the purchase price to get the loan amount, then enter that amount into the calculator. For example, if a house costs $400,000 and you put down $80,000, enter $320,000 as the loan amount.